Affordable Housing SDC Exemption Program vs. Temporary SDC Exemption Program
Portland City Council approved a Temporary SDC Exemption Program effective August 15, 2025 through September 30, 2028. The Temporary SDC Exemption Program exempts new SDCs due on residential housing, including dwelling units and congregate living facilities. The Temporary SDC Exemption Program is different than the Affordable Housing SDC Exemption Program administered through the Portland Housing Bureau. The table below summarizes the main differences between the two programs.
| Affordable Housing SDC Exemption Program | Temporary SDC Exemption Program (NEW) | |
| Accepting Applications: | Continuous | 8/15/2025-9/30/2028 |
| Apply through: | Portland Housing Bureau | Portland Permitting & Development |
| Terms: | Sale price restriction and income restriction for initial sale to homebuyer | Must reach a specified level of construction completion within 12-months of building permit issuance |
| Associated Exemptions: | Tree Removal Fee Exemption under PCC 11.50.040.C.1.(b)(2) | NONE |
This webpage includes information specific to the Affordable Housing SDC Exemption Program. For more information regarding the Temporary SDC Exemption Program, please visit Temporary system development charge exemptions for new housing units.
If you are a developer who has already applied to the Affordable Housing SDC Exemption Program but would like to convert to the Temporary SDC Exemption Program, you may refer to the following guide for additional assistance.
System Development Charges
Because new housing development within the City of Portland increases the need for transportation systems, parks and recreation facilities, and water works systems, new housing developments incur System Development Charges (SDCs) to fund a portion of the City's system improvements and capacity increases. For more information about SDCs and current rates for new development, additions, and changes of use, please visit System Development Charges (SDCs)
Program Requirements
Eligible Developments
To be eligible for the Affordable Housing SDC Exemption Program, the applicant must have site control and the proposed development must meet the following affordability requirements (per Title 30.01 – Affordable Housing Preservation, Chapter 30.01.095).
PHB's Affordable Housing SDC Exemption Program assists developers by reducing their development costs when building affordable residential housing. Developers are exempt from paying SDCs levied by the City of Portland only when these units meet program requirements.
The Affordable Housing SDC Exemption Program has different requirements dependent upon whether exempted units will be sold to homebuyers or rented.
Select a type to view more about eligibility:
Compliance Requirements
The Portland Housing Bureau (PHB) requires the applicant to comply with the terms and conditions outlined in their recorded Regulatory Agreement. The compliance requirements differ dependent on whether the exempted unit will be sold to home buyers or rented.
Select a type to view specific compliance requirements:
How to Apply
Instructions for developers and builders
To apply for the Affordable Housing SDC Exemption Program, developers must submit an application and supporting documentation to the Portland Housing Bureau (PHB). Developers must apply for the program after they submit their building permit application to Portland Permitting & Development (PP&D) Permit Center, but before they pay for their approved building permits and pull the permit to start construction.
See all required documents and application fees.
After receiving an approval letter, the applicant must contact the four SDC Bureaus to request the exemptions be credited to their permit in lieu of paying the SDCs.
Please note: The SDC Bureaus will not refund paid System Development Charges.
Forms and Documents
Be sure to review all of the specific information before applying as it is different dependent on whether the exempted unit will be sold to home buyers or rented.
Select a type to view appropriate materials and helpful information for completing the application:
Please note: For buildings subject to, or opting into Inclusionary Housing, there is a shortened IH SDC Exemption Application for rental units. View IH forms.